Which of the following statements about price discrimination is correct?
a. A price discriminating firm will want to charge a higher price to the consumer group with the more inelastic demand.
b. A firm will always be able to increase its profit by price discriminating rather than charging the same price to all customers.
c. Price discrimination will be most effective when buyers can easily resell the product amongst themselves.
d. Each consumer will pay a higher price when a firm is a price discriminator than would be the case if all customers were charged the same price.
A
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When marketing makes customers better informed about all firms in the market: a. demand curves for specific brands in the market are likely to become less elastic. b. each firm is likely to have less market power
c. firms are better able to foster stronger brand loyalty. d. the market power of individual firms is strengthened.
Under what circumstances would you expect economic profits to be zero in a particular industry?
A. During a recession B. When there is little competition in the industry C. When the industry is neither expanding nor contracting D. When the demand for the product being produced is increasing
An ideal voting system must not have:
A. a one-dimensional issue being voted on. B. a person who has the power to single-handedly enact his or her own preferences. C. a person who can convince everyone to vote for his or her preferences, and not their own. D. transitivity of preferences
Briefly describe revealed preference and stated preference as means of determining the value of a statistical life.
What will be an ideal response?